• There’s been a major shift in consumer product device towards “smart” design. Users are now focused on features such as electric, automation, and on-demand information. The increasing demand for this type of functionality has driven the growth of giants such as Twitter (TWTR) and Tesla (TSLA), companies which have respectively revolutionized the field of information and automobiles.
• In addition to “Smart News” and “Smart Cars”, the next market taking off is “Smart Home”. Homeowners are looking for increasing transparency in the control of their domicile, which has driven the big valuations and takeover prices of companies like Nest and Ring, two companies that were acquired by Google and Amazon respectively.
• Trutankless Inc. (TKLS) is an up-and-comer in this $52B market, building their position with significant long-term partnerships including wholesale/distribution leaders like Benjamin Franklin and RotoRooter. These relationships are contributing to a hockey-stick like growth in revenue, with sales growth of over 120% in 2018, and this kind of early trend could be the beginning of something bigger.

NEW YORK, NY / ACCESSWIRE / April 26, 2019 / The disruption of established markets brought by the advent of cloud connectivity and mobile technology continues into 2019. True leaders in bringing high-tech approaches to traditional services such as news and automobiles have minted a handful of multi-billion-dollar companies such as Twitter and Tesla. Recently, the home market has been getting attention, with recent winners being Ring, a smart doorbell company, and Nest, a smart thermostat company, both acquired for over a billion dollars.

Disruptive Smart Revolution Comes in The Form of Instant Control and Information

The products and brands that have truly disrupted and taken off in their respective markets have been ones that offered their users an unparalleled improvement in terms of control and access to information.

This is evident in Twitter, which shifted the consumption of information away from traditional paper newspapers towards instant real-time information, curated by the community at large through likes and retweets.

The same goes for Tesla, where their Model 3 was responsible for 60% of all US Electric Vehicle sales in Q1 2019. Despite the existence of other competing electric vehicle models, what has presumably driven the dominance of Tesla’s cars is their mobile app. The Tesla App allows their consumers to access media, control the climate of their car, monitor charging status, location, and even “summon” the car to pull up in front of them.

It is precisely this type of smart functionality that has disrupted the centuries old markets of news and automobiles. We’re currently seeing a similar level of disruption in the home market from Trutankless, which offers the same vein of smart functionality in the $52 Billion water heater market.

Trutankless’ Meaningful Disruption Seeing Significant Traction

As seen through the explosive rise of Ring and Nest, it’s clear that homeowners are drawn to the idea of having total control over their residence. Tying into the ubiquitous internet of things, smart devices continue to creep into the home setting, allowing control and transparency into everything inside and outside the house. Trutankless spotted this opportunity for the mundane water heater, and is starting to make waves in homes across the U.S.

The company offers an electric, on-demand water heater that allows wi-fi connectivity, usage report generation, endless hot water, at a much smaller size than traditional “tank” water heaters. This may come at a surprise to many, but the market for water heaters is massive. Globally, they’re expected to bring in $52.8 Billion in revenue by the end of 2021. Where in 2018, over 8.5 million storage-type “tank” water heaters were shipped/installed in the U.S, according to AHRI. Storage-type water heaters have a relatively short lifespan, traditionally 8-12 years, contingent upon water type and other factors. As water heaters continue to be replaced, it’s reasonable to expect that on-demand, tankless water heating solutions will continue to replace traditional models, and this subset of the market is expected to exceed $15 billion by 2024, according to Global Market Insights.

The adoption of next-generation water heaters should accelerate as an increasing amount of tech-hungry millennials continue to become homeowners.

Growth May Just Be Getting Started

2018 was a breakout year for the company sales wise, with Trutankless reporting record revenue of $1,573,978 in Fiscal Year 2018 compared to $697,857 in 2017. Driven by awards from market thought leaders such as “Houzz” and the International Builders Show, the company continues to gain traction in the form of new partnerships with nationally-recognized companies and organizations. These include entities such as Morrison Supply, Ferguson, Benjamin Franklin and RotoRooter. Consumer Reports included their water heater in their Top 5 Remodeling Trends for 2016 report and their home electric tankless water heater is listed as the preferred product for multiple distributors.

The company continues to grow their relationship with established homebuilding clients, including Shea homes and Cullum Homes (NAHB’s 2019 Custom Builder of the Year), and in 2018, their wholesale market footprint grew from 165 distributors to well over 1000, a 6x increase.

These accomplishments are starting to reflect in their topline figures, as shown in their 120% growth in revenue over the previous year. These kinds of growth metrics are compelling in such a large market, and it’s a name to know as the smart home market accelerates.

About One Equity Stocks

One Equity Stocks is a provider of paid-for research on publicly traded emerging growth companies. This is an advertisement. We are not a licensed broker-dealer and do not publish investment advice and remind readers that investing, especially in penny stocks, involves considerable risk. One Equity Stocks encourages all readers to carefully review the SEC filings of any issuers we cover and consult with an investment professional before making any investment decisions. One Equity Stocks is a for-profit business and is typically compensated for coverage of issuers we cover as well as other advisory work we perform. Although we always strive to be objective and present the facts, you should assume we are biased because of the financial relationship we have with companies we write about. We have had an advisory relationship with TKLS since March of 2019 and may receive up to 600,000 restricted shares of TKLS for various advisory services including this advertisement over the next 180 days. We have not sold any stock, but may do so without notice in the future, and if so are unable to update this disclosure. We are also reimbursed for expenses we incur related to the provision of advisory services. Please contact us at [email protected] for additional information or to subscribe to our intelligence service.

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